You mean dip?
IMHO the reason the China trade talks have stalled is that China is going to wait it out for the 2020 election. IMHO they are rooting for the likes of Joe Biden who can be bought off.
The fact that China is willing to go into a trade war to protect Huawei tells me that the concern that they are using it to inject spy code into all of our infrastructure and potentially trojans too, is probably true. That makes it nationally strategic to keep it going. And hence they are getting extra aggressive after Trump slowed them down a tad.
Here is the crux of it. "Free traders" object to tariffs but we do not have free trade. China is a one way market by their design. They steal our tech and our IP too, relentlessly and blatantly. There is no such think today as free trade with China, just them laughing at us. At this point I assume that those that object to pushing back against China are getting paid by China.
We have all the leverage. They need us waaay more than we need them. I only refer to trade, if they decide to expand and initiate cyber attacks and the like then they probably can cripple a lot of our nation. But doing so means nukes fly in their direction. I doubt they take that path.
Great job on formatting that article.
Meanwhile, the Dow is up 334.
Thanks for posting this great article.
“It is highly possible that China never intended to adhere to the terms of a deal.”
...and it is highly probable that President Trump knew this beforehand. I think that he has always known he would have to pull our supply chain out of China, over their resistance - like pulling teeth.
Hopefully, the collapse of China’s financial system can be delayed until after the election, but I think that he wants it baked into the cake before the election, so they can’t be saved in time if a Democrat wins.
[In years past, China used its peg to suppress its currency value even as it ran huge trade surpluses. In a free market, Chinas currency value would rise over time due to the world buying its goods, yet China instead printed RMB and sat on the dollars it received. The RMB printing caused bubbles in China, and sitting on the dollars kept Chinas exports super-competitive, by keeping Chinas wages artificially low in U.S. dollar terms.]